6 digit SAC Code is required if Turnover more than 5 Crore

This query is : Resolved

Prem Chandra Thakur (Querist)
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06 April 2021 Dear Sir ,

Going through the notification no.78 dt.15-10-2020 , I noticed that only 6 digit HSN code is mandatory to mention on invoice in case of turnover more than 5 crore.
My question is whether 6 digit SAC code is required to mention on invoice if turnover more than 5 crore.

Thanks & Regards
Prem Chandra Thakur

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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07 April 2021 Considering the Explanation (i) in the principal notification no.12/2017 – Central Tax, dated the 28th June, 2017, which is reproduced below, I think it is applicable even in case of SAC:
(i) Reference to “Chapter”, “Section” or “Heading”, wherever they occur, unless the context otherwise requires, shall mean respectively as “Chapter, “Section” and “Heading” in the scheme of classification of services.
Any other view is welcome.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 As per the notification no. 78 dated 15-10-2020, which mandates the mention of HSN codes on invoices for taxpayers with turnover exceeding 5 crore, the requirement applies specifically to goods and their classification under the Harmonized System of Nomenclature (HSN).

For Services Accounting Codes (SAC), which classify services for GST purposes, there is no specific requirement mentioned in the notification. Typically, SAC codes are used to classify services for GST, but unlike HSN codes for goods, there is no explicit mandate to mention SAC codes on invoices.

Therefore, based on the current regulations and notifications:

- **HSN Code**: Mandatory to mention on invoices for goods if turnover exceeds 5 crore.
- **SAC Code**: Not explicitly mandatory to mention on invoices for services as per the notification.

However, it's essential to ensure compliance with GST regulations and any future updates or notifications that may affect invoicing requirements. Always refer to the latest GST notifications or consult with a tax professional for specific advice tailored to your business situation.

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